With this report, the Department of Housing and Urban Development begins a series of regular biennial reports to the Congress evaluating the Home Equity Conversion Mortgage (HECM) Insurance Demonstration in accordance with Section 255(k) of the National Housing Act, as amended by Section 417 of the Housing and Community Development Act of 1987 (P.L. 100-242). This preliminary evaluation also updates an Interim Report on the HECM Demonstration that the Department submitted to the Congress in October 1990.

In accordance with the statute, the HECM Demonstration, also known as the Federal Housing Administration (FHA) reverse mortgage program, was designed by the Department in consultation with other Federal agencies and various organizations and individuals having appropriate expertise. The Department's design efforts continue a longstanding tradition of innovation at HUD and FHA going back to FHA's pioneering efforts in developing the first government-backed home mortgage insurance program and the self-amortizing, low-down payment, long-term mortgage loan in the 1930's.

This report is part of the collection of scanned historical documents available to the public.